Notes to Accounts of KCP Sugar & Industries Corporation Ltd.

Mar 31, 2023

Terms / Rights attached to Equity Shares:

The Company has only one class of Equity Shares having a Face Value of Re.1/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their shareholding at the meetings of shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Under Section 135 of The Companies Act, 2013 the Company is required to spend Rs. Nil/-(P.Y.Rs.Nil) during the year under review towards Corporate Social Responsibility (CSR) activities as framed by the Company in its Corporate Social Responsibility program. However, the Company has spent Rs. 18.01 lakhs, (P.Y.Rs. 17.24 lakhs).

	44 - Contingent Liabilities: a. Outstanding Guarantees issued by Banks on behalf of the Company is Rs. 150.49 Lakhs (PY Rs. 212.02 Lakhs) b. Demands raised on the company by the respective authorities are as under: Amount in Lakhs
	Particulars	As at March 31, 2023	As at March 31, 2022
	Share Transmission	11.06	11.06
	Labour Cases	81. 83	79.54
	Non - Enrolment of Contract Labour for the Purpose of Contribution to Provided Fund	110.95	110.95
	Case on Duty Relating to Captive Power Generation and Sale to Grid	578.87	578.87
	Value Added Tax Case	16.61	37.94
	Total	799.32	818.36
	Based on the expert opinions obtained, the Company had been advised not to make any provision in the Accounts.

b. Fair Value Hierarchy

• Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the

asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 - Inputs for the assets or liabilities that are not based on observable market data

(unobservable inputs).

c. Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instruments include:

• Use of quoted market prices for Listed instruments

48 - Financial Risk Management

The Company''s activities expose to limited financial risks: market risk, credit risk and liquidity risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

Market risk

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument.

The company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), Interest rate risk and the market value of its investments.

Securities Prices Risk:

The Company''s exposure to equity securities price risk arises from Investments held and classified in the Balance Sheet as Fair Value through P&L. The Company has investment in the form of Mutual funds and Equity shares. The Company monitors the movement in the value of the Investments by observing the NAV / Market Price.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counter party resulting in a financial loss. It principally arises from the Company''s Trade Receivables, Advances and deposit(s) made.

Trade receivables

The Company has outstanding trade receivables amounting to Rs.951.32 Lakhs and Rs.1267.64 Lakhs as of March 31, 2023 and March 31, 2022 respectively. Trade receivables are typically unsecured are derived from revenue earned from customers. Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The company is not exposed to concentration of credit risk to any one single customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

Further for amounts overdue are constantly monitored by the management and provision towards expected credit loss are made in the books. Management estimated of expected credit loss for the Trade Receivables are provided below with the classification on debtors.

Trade receivables are impaired in the year when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired for each reporting dates under review are of good credit quality.

Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company''s principal sources of liquidity are cash and cash equivalents, cash generated from operations, Term loans, deposits from public and short term borrowings from Bank.

The company manages liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.

Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues, repayment of loans and retention & deposits arising during the normal course of business as of each reporting date. We maintain a sufficient balance in cash and cash equivalents to meet our short-term liquidity requirements.

Long term liquidity requirements on a periodical basis and manage them through internal accruals. Our non-current liabilities include non-convertible debentures, optionally convertible debentures, Unsecured Loans from Promoters, Term Loans from Banks, Retentions & deposits.

The table have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

Interest Rate Risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company''s cash flows as well as costs. The Company is subject to variable interest rates on some of its interest-bearing liabilities being short term borrowings .

The model assumes that interest rate changes are instantaneous parallel shifts in the yield curve. Although some assets and liabilities may have similar maturities or periods to re-pricing, these may not react correspondingly to changes in market interest rates. Also, the interest rates on some types of assets and liabilities may fluctuate with changes in market interest rates, while interest rates on other types of assets may change with a lag. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date.

The period end balances are not necessarily representative of the average debt outstanding during the period.

Capital management

The Company''s objectives when managing capital are to safeguard the Company''s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets or by adequate funding by the shareholders to absorb the losses of the Company.

The Company''s capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of Company''s capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The capital gearing ratio is provided in table below:

*Debt represents Long Term Borrowings. Equity represents Share capital and other Equity.

49 - Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits”

General description of various defined employee''s benefits schemes are as under:

a) Provident Fund:

The company is remitting Employee and Employer PF Contributions to EPFO effective from 01/04/2021.

b) Gratuity:

Gratuity is a defined benefit plan, provided in respect of past services based on the actuarial valuation carried out by LIC of India and corresponding contribution to the fund is expensed in the year of such contribution.

The scheme is funded by the company for employees and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India.

The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Other Comprehensive Income (OCI) and Balance Sheet & other disclosures are as under: However, the disclosure of information as required under IND AS - 19 have been made in accordance with Actuarial valuation.

54. Details relating to loans or advances in the nature of loans to Promoters, Directors,

KMP and related parties - Nil

55. Details relating to Benami Property held by the Company - Nil

56. Details relating to declaration of the company as wilful defaulter by any bank or financial

institution or other lender - Nil

57. Details relating to the nature of transaction carried out with the

struck- off company - Nil

58. Details relating to the transactions under taken in Crypto or Virtual Currency - Nil

59. Details relating to the undisclosed income reported - Nil

60. Details regarding registration or satisfaction of charges with Registrar of

Companies, beyond the statutory period - Nil

61. Details regarding compliance with number of layers of companies - Nil

62. Details regarding compliance with approved scheme of arrangements - Nil

63. Previous year''s figures have been regrouped and reclassified wherever necessary.

64. The title deeds of immovable properties are held in the name of the company, except in respect of certain immovable properties (Land and buildings), which have been transferred to the company as per the scheme of demerger, which are in the name of the erstwhile demerged Company.

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Mar 31, 2018

Note 1. Corporate Information

K.C.P Sugar and Industries Corporation Ltd is a listed entity, one among the leading sugar manufacturing companies in India . Its allied business consists of manufacturing and marketing of Rectified Spirit, Extra Neutral Alcohol, Ethanol, Incidental Cogeneration of Power, Organic Manure, Mycorrhiza Vam, Calcium Lactate and CO2. Company has two sugar factories located in Krishna District, Andra Pradesh having an aggregate crushing capacity of 11,500 tons per day. It has its registered office at 239/183, Ramakrishna Buildings, Anna Salai, Chennai, Tamil Nadu 600006, India.

The financial statements were approved by the Board of Directors and authorised for issue on 25.05.2018

2.1 Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of Re.1/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company , after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Secured by hypothecation of work-in-progress, finished goods, raw materials, stores and spares, book debts, all other currents assets and further secured by a second charge created on movable fixed assets of Sugar units at Vuyyuru and Lakshmipuram.

3 Transition to IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (The Company’s date of transition).

3.1 In preparing its first Ind AS financial statements in accordance with Ind AS 101 First-time Adoption of Indian Accounting Standards, the Company has applied the relevant mandatory exceptions and certain optional exemptions from full retrospective application of Ind AS. Material optional exemptions applied by the Company and applicable mandatory exceptions for the Company are as follows:

3.2 A: Ind AS optional exemptions and mandatory exceptions availed

1. Deemed cost of Property Plant and Equipment

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments as required to be made as per para 10 of Ind AS 101.

The Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value after making the necessary adjustments now required to be made as required by the Ind AS.

2. Evaluation of arrangements in the nature of lease

Ind AS 101 allows an entity to determine whether an arrangement existing at the date of transition to Ind AS contains a lease on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.

The Company has elected to determine whether the arrangements existing contains a lease on the basis of the facts existing on transition date.

3. Revenue from Contracts with customers

A first-time adopter is not required to restate contracts that were completed before the earliest period presented. A completed contract is a contract for which the entity has transferred all of the goods or services identified in accordance with previous GAAP

Accordingly the Company has not restated the contracts completed in accordance with the previous GAAP as as at the transition date.

3.3 B: Ind AS mandatory exceptions

1. Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in Mutual fund carried at FVPL

- Impairment of financial assets based on expected credit loss model.

2. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

3.4 C : First time adoption

The impact on First time adoption of Ind AS is set out in Note

1. Fair valuation of investments

Uner IND AS investment in Equity and mutualfunds is measured at fair value and the changes in value are recognised in profit and loss account

2. Re measurements of post-employment benefit obligations

Under Ind AS, re measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised net of tax in other comprehensive income, net of tax instead of profit or loss. Under the previous GAAP these re measurements were forming part of the profit or loss for the year.

3. Excise duty

Under the previous GAAP revenue from sale of products was presented exclusive of excise duty. Under the Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in the total revenue and total expenses for the year ended 31 March 2018. However there is no impact on total equity and profit.

4. Under Section 135 of The Companies Act, 2013 the company is required to spend Rs.3,22,726/- during the year under review towards Corporate Social Responsibility (CSR) activities as framed by the Company in its Corporate Social Responsibility program. However, the Company has spent Rs.21,25,577/-

5. Contingent Liabilities:

a. Outstanding Guarantees issued by Banks on behalf of the company is Rs.3,46,17,938/- (PY Rs. 3,46,53,563/-)

b. Demands raised on the company by the respective authorities are as under:

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the Act have not been given.

Disclosure requirements of Indian Accounting Standards

6. Disclosures in respect of Ind AS 107 - Financial Instruments

a. Financial Instruments by Categories

The carrying value and fair value of financial instruments by categories were as follows:

b. Fair Value Hierarchy

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

c. Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instruments include:

Use of quoted market prices for Listed instruments

d. The following tables present fair value hierarchy of assets and liabilities measured at fair value:

7. Financial risk management

The Company’s activities expose to limited financial risks: market risk, credit risk and liquidity risk. The Company’s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

Market risk

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument.

The company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), Interest rate risk and the market value of its investments.

Securities Prices Risk:

The company’s exposure to equity securities price risk arises from Investments held and classified in the Balance Sheet as Fair Value through P&L. the company has investment in a form of Mutual funds and Equity shares. The company monitors the movement in the value of the Investments by observing the NAV.

Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. It principally arises from the Company’s Trade Receivables, Advances and deposit(s) made

Trade receivables

The company has outstanding trade receivables amounting to Rs. 22,59,40,321 and Rs. 23,28,77,136 as of March 31, 2018 and March 31, 2017, respectively. Trade receivables are typically unsecured are derived from revenue earned from customers. Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The company is not exposed to concentration of credit risk to any one single customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

Further for amounts overdue are constantly monitored by the management and provision towards expected credit loss are made in the books. Management estimated of expected credit loss for the Trade Receivables are provided below with the classification on debtors.

Credit risk exposure:

An analysis of age of trade receivables at each reporting date is summarized as follows:

Trade receivables are impaired in the year when recoverability is considered doubtful based on the recovery analysis performed by the company for individual trade receivables. The company considers that all the above financial assets that are not impaired for each reporting dates under review are of good credit quality.

Liquidity Risk

Our liquidity needs are monitored on the basis of monthly and yearly projections. The company’s principal sources of liquidity are cash and cash equivalents, cash generated from operations, Term loans, deposits from public and short term borrowings from Bank.

The company manages liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.

Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues, repayment of loans and retention & deposits arising during the normal course of business as of each reporting date. We maintain a sufficient balance in cash and cash equivalents to meet our short-term liquidity requirements.

Long term liquidity requirements on a periodical basis and manage them through internal accruals. Our noncurrent liabilities include non-convertible debentures, optionally convertible debentures, Unsecured Loans from Promoters, Term Loans from Banks, Retentions & deposits.

The table have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the company can be required to pay.

Interest Rate Risk

Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rates. Any movement in the reference rates could have an impact on the Company’s cash flows as well as costs. The Company is subject to variable interest rates on some of its interest-bearing liabilities being short term borrowings.

The following table represents the contractual obligation and receivables to/from financial liabilities and financial assets respectively.

The Company’s variable interest rate exposure is mainly related to debt obligations arising from short debt borrowings

The interest expenses and impact on it on account of Increase/decrease of 100 basis points in interest rates at the balance sheet is provided in table below:

The model assumes that interest rate changes are instantaneous parallel shifts in the yield curve. Although some assets and liabilities may have similar maturities or periods to re-pricing, these may not react correspondingly to changes in market interest rates. Also, the interest rates on some types of assets and liabilities may fluctuate with changes in market interest rates, while interest rates on other types of assets may change with a lag. The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date.

The period end balances are not necessarily representative of the average debt outstanding during the period. Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets or by adequate funding by the shareholders to absorb the losses of the Company.

The Company’s capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of Company’s capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The capital gearing ratio is provided in table below:

*Debt represents long term loan from banks and deposits from public.

8. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 “Employee Benefits”

a. General description of various defined employee’s benefits schemes are as under:

a) Provident Fund:

The company’s Provident Fund is managed by Regional Provident Fund Commissioner. The company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, provided in respect of past services based on the actuarial valuation carried out by LIC of India and corresponding contribution to the fund is expensed in the year of such contribution.

The scheme is funded by the company and the liability is recognized on the basis of contribution payable to the insurer, i.e., the Life Insurance Corporation of India, however, the disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

b. The summarized position of various defined benefits recognized in the Statement of Profit & Loss, Other Comprehensive Income(OCI) and Balance Sheet & other disclosures are as under:

Movement in defined benefit obligation:

a) Under the previous GAAP dividends on equity shares recommended by the board of directors after the end of the reporting period but before the financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends are recognised when approved by the members in a general meeting. The effect of this change is an increase in total equity as at April 1, 2016 of Rs. 3,41,16,895, but does not affect profit before tax and total profit for the year ended March 31, 2017.

b) Under previous GAAP actuarial gains and losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurernent of the net defined benefit liability / asset which is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under lnd AS instead of profit or loss. The actuarial losses for the year ended March 31, 2017 were Rs. 171,528/- (Net of taxes)

c) Under previous GAAP Security deposits were carried at transaction cost, while under Ind AS, present value of these deposits are retained in the financial statement and balance value of these deposits are carried as pre-paid rent.

d) Under previous GAAP there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income.

e) Under previous GAAP investments are carried at cost at the end of the reporting period. Under Ind AS, investments are carried at fair value through PL. The effect of this is reduction in total equity as at April 1, 2016 of (Rs.10,95,29,389), the effect of same on statement of profit and loss of March 31, 2017 is gain of is Rs.25,93,70,650/-

f) Under Previous GAAP Provision for bad and doubtful debts for the advances given are made on incurred loss model. Under Ind AS, provision is made on expected credit loss model.

g) Under previous GAAP Financial liabilities were carried at book value, while under Ind AS fair value of the liabilities are computed and retained in Balance sheet and interest is accounted accordingly based in the repayment. This change has resulted in increase of equity as at 01April, 2016 to the tune of Rs.5,74,65,276, the same has resulted in additional expense of Rs.2,80,72,569 to the statement of profit and loss for the year ended March 31 2017.

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Mar 31, 2016

Note: The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/ payable as required under the Act have not been given.

Outstanding Guarantees furnished by banks on behalf of the company is Rs.4,00,88,538/-(Rs. 3,13,30,438/-)

1. Outstanding dues to Micro, Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid / payable as required under the Act have not been given.

Provident fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Company''s actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

2. Purchase tax is payable at Rs.60/- per MT on the sugarcane purchased. In this respect, the Govt. of Andhra Pradesh is used to notify the said levy for every sugar season separately. Considering the financial hardships faced by the sugarcane farmers, the Govt. of Andhra Pradesh has been directing the sugar mills to pay the said tax to the sugarcane suppliers as an ‘incentive ‘instead of paying the same to the Govt. of Andhra Pradesh as was done in the recent years. A notification in this respect is still awaited from the Govt. The Company is of the firm belief that the similar gesture will be extended for the current season also. The accumulated purchase tax payable on the sugarcane purchased up to 31st March, 2016 amounting to the tune of Rs.6,53,85,683/- has been classified vide Note No.10(e) “ Other Current Liabilities :- Statutory Liabilities".

3. Under Section 135 of The Companies Act, 2013 the company is required to spend Rs.47,71,092/- during the year under review towards Corporate Social Responsibility (CSR) activities as framed by the Company in its Corporate Social Responsibility program. However, the Company could spend Rs.10,00,000/- due to financial downtrend faced by the sugar industries on account of supply far exceeding the demand and consequential fall in sugar prices to un-remunerative levels. The said amount was spent towards improvement of living conditions and provision of basic amenities in the villages surrounding the Company''s manufacturing units.

4. Earnings per share (EPS) - The numerators and denominators used to calculate Basic and Diluted Earnings per share

5. General :

Sundry debtors, creditors and loans and advances are subject to confirmation. Paise have been rounded off.

Figures in brackets indicate those for the previous year.

Figures for the previous year have been regrouped, wherever necessary.

Note : The above does not include of Rs 13,02,15,268/- (PYRs. 11,13,67,746/-) being the cost of Motors, Components, Pipes, Spares etc., consumed.

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Mar 31, 2015

1. Contingent liabilities:

Contingent Liabilities:

Claims against the company not acknowledged as debts:

31.03.2015 31.03.2014 PARTICULARS Amount - Rs.

Share transmission 11,05,851 11,05,851

Labour cases 30,26,987 29,50,596

Case on Duty relating to Captive Power Generation 2,61,69,375 2,61,69,375

TOTAL 3,03,02,213 3,02,25,822

Outstanding Guarantees furnished by banks on behalf of the company is Rs.3,13,30,438/- (Rs. 1,38,99,438/-)

2. Outstanding dues to Micro, Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

Provident fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Company's actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

3. The Govt. of India, with a view to improve the liquidity position of sugar factories for enabling them to clear cane price arrears of previous sugar seasons if any, and timely settlement of cane price of 2013-14 sugar season relating to the Fair and Remunerative Price (FRP) fixed by the Govt. of India to the sugarcane farmers, notified a scheme namely 'Scheme for Extending Financial Assistance to Sugar Undertaking , 2014 ' vide notification No. 20-90/2013-SP- II dt. 03-01-2014.

In this respect, The Govt. of India has directed the lending commercial banks, to consider providing financial assistance to their sugar mills based on the eligibility criteria with a loan duration of 5 years including 2 years of moratorium. The interest on the said loan will be reimbursed by the Govt. of India up to 12% per annum according to the scheme.

The company has availed the said loan to the tune of Rs.28,68,00,000/- (Refer Note No.4, Long term Borrowings- Secured Loan) based on the eligibility criteria from bank in the month of March & April 2014 for clearing the cane price (FRP) of sugar season 2013-14. The interest paid on this loan to the tune of Rs.3,49,86,498/- has been classified under Note No.19.(a) 'Short term loans and advances - Advances to Suppliers and Service providers as the same is due for reimbursement from Govt. of India.

4. Purchase tax is payable at Rs.60/- per MT on the sugarcane purchased. In this respect, the Govt. of Andhra Pradesh is used to notify the said levy for every sugar season separately. Considering the financial hardships faced by the sugarcane farmers, the Govt. of Andhra Pradesh has been directing the sugar mills to pay the said tax to the sugarcane suppliers as an 'incentive 'instead of paying the same to the Govt. of Andhra Pradesh in the recent years. Contrary to this practice, the notification No.GO RT No.68 dt.07-03-2015 Issued for sugar season 2014-2015 directed the sugar mills to remit such tax to the Government except in the case of Cooperative sugar mills. Aggrieved by the said notification, the private sugar mills represented to the Govt. of Andhra Pradesh through South Indian Sugar Mills Association (SISMA) for reconsideration and extending the facility of paying such tax as 'incentive' to their sugar cane suppliers. The Company is of the firm belief that this representation will be considered favorably and hence, the purchase tax payable on the sugar cane purchased for 2014-15 sugar season up to 31st March 2015 to the tune of Rs.6,39,91,451/- has been classified under Note No.10(e) " Other Current Liabilities :- Statutory Liabilities".

5. The depreciation on various assets, recomputed in accordance with Part 'C ' of Schedule II of The Companies Act 2013. Hence, the transitional effect on account of such re-computation, to the extent of Rs.3,90,58,105/- has been adjusted against the opening General Reserve as on 1st April, 2014. (Refer Note No.12)

6. Under Section 135 of The Companies Act, 2013 the company is required to spend Rs.84,87,070/- during the year under review towards Corporate Social Responsibility (CSR) activities as framed by the Company in its Corporate Social Responsibility program. However, the Company could spend only Rs.15,00,000/- under the head 'Environmental sustainability', due to the financial downtrend faced by the sugar industries on account of supply far exceeding the demand and consequential fall in sugar prices to un-remunerative levels.

7. General :

Sundry debtors, creditors and loans and advances are subject to confirmation. Paise have been rounded off.

Figures in brackets indicate those for the previous year.

Figures for the previous year have been regrouped, wherever necessary..

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Mar 31, 2014

1. Contingent liabilities and Capital Commitments: Contingent Liabilities:

Claims against the company not acknowledged as debts:

31.03.2014 31.03.2013 PARTICULARS Amout in Rs.

Share transmission 1105851 1105851

Case on Duty relating to Captive Power Generation 26169375 26169375

TOTAL 27275226 27275226

Outstanding Guarantees furnished by banks on behalf of the company is Rs.1,38,99,438/- (Rs. 1,30,99,478/-)

2. Outstanding dues to Micro, Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

Provident fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Company''s actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

3. Related Party Disclosures:

1 Amt. In Rs.

(AS REQUIRED UNDER PARAGRAPHS 23 AND 26 OF ACCOUNTING STANDARD 18)

(A). Names of related parties and description of relationship:

1.Subsidiaries :

a) The Eimco-K.CP.Ltd., Chennai, India.

b) KCP Sugars Agricultural Research Farms Ltd. Chennai, India.

2.Key Management Personnel :

a) Shri. Vinod R. Sethi, Executive Chairman

b) Smt. Irmgard Velagapudi M Rao, Managing Director.

c) Smt.V. Kiran Rao, Executive Director.

4. General :

Sundry debtors, creditors and loans and advances are subject to confirmation. Paise have been rounded off.Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped, wherever necessary.

Note: Company does not own or operate any Business outside India.

Carrying Amounts of Geographical Assets and additions to tangible and intagible fixed assets:

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Mar 31, 2013

1. Contingent liabilities and Capital Commitments: Contingent Liabilities:

Claims against the company not acknowledged as debts:

Particulars 31.03.2013 31.03.2012

Labour Cases 5617626 5232242

Share transmission 1105851 1105851

Case on Duty relating to Captive Power Generation 26169375 26169375

TOTAL 32892852 32507468

Outstanding Guarantees furnished by banks on behalf of the company is Rs.13099478/- (Rs. 5099438/-)

2. Outstanding dues to Micro, Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

3. RELATED PARTY DISCLOSURES:

(AS REQUIRED UNDER PARAGRAPHS 23 AND 26 OF ACCOUNTING STANDARD 18)

(A) Names of related parties and description of relationship:

1. Subsidiaries a) The Eimco-K.C.PLtd., Chennai, India.

b) KCP Sugars Agricultural Research Farms Ltd. Chennai, India.

2. Key Management Personnel a) Shri. Vinod R. Sethi, Executive Chairman

b) Smt. Irmgard Velagapudi M Rao, Managing Director.

c) Smt.V. Kiran Rao, Executive Director.

4. General :

Sundry debtors, creditors and loans and advances are subject to confi rmation. Paise have been rounded off. Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped, wherever necessary.

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Mar 31, 2012

1. Contingent liabilities and Capital Commitments: Contingent Liabilities:

Claims against the company not acknowledged as debts:

Particulars 31.03.2012 31.03.2011

Labour Cases 5232242 4847218

Share transmission 1105851 -

Case on Duty relating to Captive Power Generation 26169375 26169375

Total 32507468 31016593

Outstanding Guarantees furnished by banks on behalf of the company is Rs.5099438/- (Rs. 5049438/-)

2. Outstanding dues to Micro Small and Medium Enterprises

The Company has not received any intimation from suppliers regarding their status under the Micro Small and Medium Enterprises Development Act 2006 and hence disclosures if any relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

3. RELATED PARTY DISCLOSURES:

(As Required under paragraphs 23 and 26 of Accounting Standard 18)

(A) Names of related parties and description of relationship:

1. Subsidiaries a) The Eimco-K.C.P.Ltd. Chennai India.

b) KCP Sugars Agricultural Research Farms Ltd. Chennai India.

2. Key Management Personnel a) Shri. Vinod R. Sethi Executive Chairman

b) Smt. Irmgard Velagapudi M Rao Managing Director.

c) Smt.V. Kiran Rao Executive Director.

4. SEGMENT REPORTING

(I) The Company has identified the reportable segments as on 31-03-2012 and others taking into account the nature of products and services the different risks and returns and the internal reporting systems. The accounting policies for segment reporting are in line with the accounting policies followed by the Company.

5. General :

Sundry debtorscreditors and loans and advances are subject to confi -rmation. Paise have been rounded off. Figures in brackets indicate those for the previous year. Figures for the previous year have been regrouped wherever necessary.

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Mar 31, 2011

1. Contingent liabilities and Capital Commitments:

i) Claims against the company not acknowledged as debts:

31.03.2011 31.03.2010

Particulars Amount - Rs.

Labour Cases 48,47,218 44,62,194

Central Excise Cases NIL 1,91,12,314

Case on Duty relating to Captive Power Generation 2,61,69,375 2,61,69,375

TOTAL 3,10,16,593 4,97,43,883

ii) Outstanding Guarantees furnished by banks on behalf of the company is Rs.50,49,438/- (P.Y Rs. 53,49,438/-)

2. Cash and Bank Balances include:

i) Rs.1,00,000/- (P.Y Rs. 2,81,243/-) on account of staff security deposits.

ii) Rs.5,05,000/- (P.Y Rs. 8,83,362/-) representing Fixed Deposit receipts lodged with bankers as margin money against guarantees issued by them.

iii) Rs.1,54,08,000/- (P.Y Rs. 68,19,000/-) in Fixed Deposit in accordance with the Companies (Acceptance of deposits) Rules 1975.

iv) Rs.1,31,41,994/- (P.Y Rs. 1,12,14,339/-) towards unclaimed dividends in accordance with Section 205 of the Companies Act.

3. "Unsecured Loans" - include:

Fixed Deposits of Rs. 3,00,00,000/- (P.Y Rs. 3,00,00,000/-) received from a Whole-time Director of the Company.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

Provident Fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Company's actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

5. General :

Sundry debtors, creditors and loans and advances are subject to confirmation Paise have been rounded off.

Figures in brackets indicate those for the previous year.

Figures for the previous year have been regrouped, wherever necessary.

I. THE EIMCO-KCP LIMITED:

1. The above Company is a wholly owned subsidiary of 'K.C.P.Sugar and Industries Corporation Limited', in which the Company holds the entire 6,00,000 shares of Rs.10/- each fully paid up (including 10 shares held by its Nominees).

II. KCP SUGARS AGRICULTURAL RESEARCH FARMS LIMITED:

1. The above Company is a wholly owned subsidiary of 'K.C.P.Sugar and Industries Corporation Limited', in which the Company holds the entire 22,50,000 shares (P:Y:22,50,000) of Rs.10/- each fully paid up (including 6 shares held by its Nominees) as on 31st March 2011.

3. KCP Sugars Agricultural Research Farms Limited has not proposed any dividend for the year ended 31.03.2011.

4. No part of the above profits or reserves have been dealt with in the Company's Accounts.

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Mar 31, 2010

1. Contingent liabilities:

i) Claims against the company not acknowledged as debts:

31.03.2010 31.03.2009 Particulars Amount - Rs.

Labour Cases 44,62,194 3,84,495

Central Excise Cases 1,91,12,314 1,91,12,314

Case on Duty relating to Captive Power Generation 2,61,69,375 2,61,69,375

TOTAL 4,97,43,883 4,56,66,184

ii) Outstanding Guarantees furnished by banks on behalf of the company is Rs.53,49,438/- • (RY Rs. 59,24,438/-)

2. Cash and Bank Balances include:

i) Rs.2,81,243/- (RY. Rs.3,17,769/-) on account of staff security deposits.

ii) Rs.8,83,362/- (RY. Rs.8,73,362/-) representing Fixed Deposit receipts lodged with bankers as margin money against guarantees issued by them.

iii) Rs.68,19,000/- (RY. Rs.67,69,000/-) in Fixed Deposit in accordance with the Companies (Acceptance of deposits) Rules 1975.

iv) Rs.1,12,14,339/- (RY. Rs.1,08,82,854/-) towards unclaimed dividends in accordance with Section 205 of the Companies Act.

3. "Unsecured Loans" - include: Fixed Deposits of Rs. 3,00,00,000/- (RY Rs. 3,00,00,000/-) received from a Whole-time Director of the Company.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the Act have not been given.

Provident Fund:

The Company manages Provident fund plan through a Provident Fund Trust for its employees, which is permitted under The Employees Provident Fund and Miscellaneous Provisions Act, 1952. The plan envisages contribution by the employer and employees and guarantees interest at the rate notified by the Provident Fund Authority. The contribution by employer & employee, together with interest, are payable at the time of separation from service or retirement, whichever is earlier. The benefit under this plan vests immediately on rendering of service.

The Guidance Note on implementing AS-15, Employee Benefits(revised 2005) issued by the Accounting Standard Board (ASB) states that provident fund set up by employers, which require interest shortfall to be met by the employer, need to be treated as defined benefit plan. Pending the issuance of the Guidance Note from the Acturial Society of India, the Companys actuary has expressed inability to reliably measure the Provident fund liability. However, there is no deficit in the fund in this regard.

5. Related party disclosures:

(As required under paragraphs 23 and 26 of Accounting Standard 18)

A. Note: Names of related parties and description of relationship:

1. Subsidiaries a) The Eimco-K.C.PLtd., Chennai, India.

b) KCP Sugars Agricultural Research Farms Ltd. Chennai, India.

2. Key Management Personnel a) Shri. Vinod R. Sethi, Executive Chairman

b) Smt. Irmgard Velagapudi M Rao, Managing Director.

c) Smt. V. Kiran Rao, Executive Director.

6. General:

Sundry debtors, creditors and loans and advances are subject to confirmation.

Paise have been rounded off.

Figures in brackets indicate those for the previous year.

Figures for the previous year have been regrouped, wherever necessary.